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    Calculating Profit from Selling Capacity

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    The Chester company will sell 100 units (x1000) of capacity from their Cake product line. Each unit of capacity is worth $6 plus $4 per automation rating. The Chester company will sell the capacity for 35% off. How much do they receive when the capacity is sold?

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    Solution Preview

    Automation rating = 7
    The value of capacity =($6+7*$4)*100*1000*(1-35%) = $ 2,210,000.00

    Answer: ...

    Solution Summary

    This solution shows how much a company would receive when capacity is sold.